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Macquarie NexGen Global Infrastructure Corporation

Macquarie NexGen Global Infrastructure Corporation. February 2007. Overview Infrastructure as an Asset Class Introduction to the Macquarie Group Introduction to NexGen Financial LP Summary of the Offering Appendices. Agenda. 1. Overview. What the Fund will seek to provide:

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Macquarie NexGen Global Infrastructure Corporation

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  1. Macquarie NexGen Global Infrastructure Corporation February 2007

  2. Overview Infrastructure as an Asset Class Introduction to the Macquarie Group Introduction to NexGen Financial LP Summary of the Offering Appendices Agenda

  3. 1. Overview What the Fund will seek to provide: • Exposure to infrastructure securities on a global basis • Developed and developing countries • Infrastructure sectors not easily accessible by Canadian investors(e.g. water utilities, toll roads, airports) • Potential return consisting of income and capital growth • 6% annual tax efficient (ROC and Capital Gains) distribution, paid monthly (reviewed annually) • Access to asset class not highly correlated with traditional equities or fixed income • Macquarie Bank Group, a world leader in infrastructure • Experienced, dedicated investment team with established process

  4. Infrastructure as an Asset Class Infrastructure comprises the physical assets that a society requires to facilitate its orderly operation, including but not limited to: Bridges Airports Toll Roads (407 ETR – Toronto) Water, Gas, Electricity Transmission

  5. Infrastructure is an Attractive Asset Class • Infrastructure assets typically provide stable and predictable income streams and demonstrate some or all of the following investment characteristics Essential services Sustainable competitive advantages and barriers to entry Fixed and/or regulated returns Leverage on a fixed cost base Typically stable demand profiles Inflation hedge Long-life assets Low correlation to other asset classes

  6. Percentage of Government Spending on Infrastructure (OECD) 1970 1980 1990 2000 2003 2004 40% 35% 30% 25% % of govt spending on infrastructure 20% 15% 10% 5% 0% Australia Canada Italy Portugal United Kingdom United States Source: National Accounts, OECD (% of Government spending) Infrastructure as an Asset Class Environment and Outlook – Increasing need for private sector involvement • Decreasing government expenditure on infrastructure in OECD countries means increasing opportunity for the private sector to invest in infrastructure assets • Investment requirements for infrastructure are overwhelming – governments are struggling to keep pace

  7. Infrastructure Examples of Macquarie’s Canadian Holdings Holding Description % Owned 407 ETR User Pay Express Toll Road 30 Highway North of Toronto Edmonton Ring Road* Government Pay Highway 81 Surrounding Edmonton AltaLink Electricity Transmission Grid 23 Servicing 85% of Albertans Sea-To-Sky Highway Government Pay Highway Linking 100 Vancouver to Whistler Mountain * South East Expansion Portion

  8. Daily Revenue 2005/06 400,000 2004/05 2003/04 350,000 2002/03 300,000 2001/02 2000/01 250,000 1999/00 14 Day Moving Average Revenue (AUD) 1998/99 200,000 1997/98 1996/97 150,000 1995/96 1994/95 100,000 1993/94 50,000 1992/93 Jul Apr Oct Jan Jun Nov Mar Aug Feb Sep Dec May 2. Infrastructure as an Asset Class • Example – Toll Roads • Consistent and stable cash flows with growth • The cash flow revenues of a toll road can be predicted with relative certainty

  9. 2. Infrastructure as an Asset Class • Example – Airports • Strong long term correlation between passenger growth and GDP growth • Demonstrated history of resilience to world economic and political shocks Traffic, GDP and Real Airfares Sept 11, SARS + Iraq War 1200 (2001-03) Traffic Recession + Gulf War 1000 Real Airfares (1990-92) GDP 800 (Rebased to 100 at 1970) Relative Movement Recession 600 (1980-82) Oil Shocks (1974-76) 400 200 0 1982 1985 1988 1991 1994 2003 1979 1997 2000 1976 1973 2006 1970 Source: International Civil Aviation Organization • Revenue Sources • Landing Fees • Retail • Parking

  10. Total return, volatility and correlation On a risk-adjusted basis, the historical return on the universe of listed infrastructure companies is even more attractive compared to broad range of equity market benchmarks 17.4% 20% 17.0% 20% 14.8% 14.1% 14.1% 14.2% 15% 15% 10.3% 9.9% 10% 10% 4.8% 4.7% 4.2% 4.0% 5% 5% 0% 0% S&P500 ASX200 ASX200 S&P500 InfrastructureStocks FTSE 100 FTSE 100 InfrastructureStocks MSCI World MSCI World MSCI Europe MSCI Europe Infrastructure as an Asset Class Annualized Total Returns (1)(Last five years based on monthly data) Annualized Standard Deviation (1)(Last five years based on monthly data) Return series assumes an equally weighted portfolio. Assumes dividends re-invested. Period to end of March 2006. Australian Stock Exchange (3&5) Morgan Stanley Capital International, Inc (4) London Stock Exchange Source: Macquarie Bank Limited, Reuters Note that past performance does not guarantee future results

  11. 2. Infrastructure as an Asset Class Getting Infrastructure Exposure • Typical infrastructure investors are large pension Funds (OMERS, Teacher’s, Caisse) • Asset class generally not available as a diversified package to retail investors • Infrastructure exposure is generally purchased in three different ways: Direct Private Investments • Large investment (typically $500 million+), illiquid, little diversification Purchasing publicly traded infrastructure equities (listed) • Usually indirect exposure, liquid, not diversified Macquarie NexGen Global Infrastructure Corporation • Purchase of a diversified, actively managed infrastructure fund

  12. The Macquarie Group • A global leader in infrastructure funding and investment management • Macquarie Team manages a $35 billion global investment portfolio • Solid 12 year investment track record • Infrastructure team – 500 professionals in 25 countries • Majority of infrastructure portfolio is held through its 28 listed and unlisted funds and vehicles • Infrastructure investment portfolio managed similarly to this fund of US$1.4 billion Data as of Dec. 31, 2006

  13. The Macquarie Group • 25 Countries • 98 Assets • Total Infrastructure AUM $35 Billion • A Global Leader in Infrastructure EUROPE UK Arqiva Birmingham Airport Bristol Airport East London Bus Group Energy Power Resources (UK) M6 Toll Moto NM Renewable Energy Red Bee Media Steam Packet Thames Water* Wales & West Utilities Wightlink Italy Rome Airport Belgium Brussels Airport Spain Itevelesa France Autoroutes Paris-Rhin-Rhône Energy Power Resources (Europe) French windfarms* Germany TanQuid (tank storage business) Warnow Tunnel Denmark Copenhagen Airport Portugal Tagus Crossings The Netherlands European Directories** NRE* Netbeheer Haarlemmermeer* Obragas Net* Poland Deep Sea Container Terminal Sweden Arlanda Express United Arab Emirates United Arab Emirates AAIC ICAD II Canada 407 ETR AltaLink Cardinal Power Edmonton Ring Road Leisureworld Sea To Sky Japan Hakone Turnpike Ibukiyama Driveway Australia Adelaide Airport AlintaGas Networks Broadcast Australia Dampier-Bunbury Electranet SA Eastern Distributor (M1) EastLink Macquarie Regional Radioworks Multinet Prospect Water Retirement Care Australia Sydney Airport Transtoll United Energy Distribution Westlink M7 Zig Inge China/Taiwan Changshu Xinghua Port Taiwan Broadband Communications New Zealand ElderCare Metlifecare Private Lifecare South Korea Baekyang Tunnel Cheonan Nonsan Expressway CJ CableNet Daegu East Circular Road Incheon Expressway Incheon Grand Bridge Kwangju 2nd Beltway, Section 1 Kwangju 2nd Beltway, Section 3 Machang Bridge New Daegu Busan Expressway Seosuwon-Osan-Pyungtaek Expressway Seoul Chuncheon Expressway Seoul Subway #9 SK E&S Soojungsan Tunnel Woomyunsan Tunnel Yongin Seoul Expressway USA AIR-serv Aquarion* Atlantic Aviation Boart Longyear District Energy Dulles Greenway Duquesne Light* Hanjin Container Terminals*^ Icon Parking Indiana Toll Road International-Matex Tank Terminals Parking Company of America Skyway Smarte Carte South Bay Expressway The Gas Company AFRICA South Africa Bakwena Platinum Corridor N3 Toll N4 Maputo Toll Tanzania Kilimanjaro Airport As at October 31, 2006 – the assets listed are managed by IBF with various direct % stakes held in each * Subject to financing and customary closing arrangements ** European Directories also located in Sweden, Finland, Austria, Czech Republic, Slovakia, Denmark and France ^ Hanjin Container Terminals also located in Japan and Taiwan

  14. The Macquarie Group Indicative Portfolio • Sectoral breakdown of an indicative portfolio of listed infrastructure securities  Had portfolio been purchased on Dec. 31, 2006

  15. The Macquarie Group – Fund’s Top 10 Indicative Holdings  Had the Portfolio been purchased on Dec. 31, 2006  Source: Bloomberg.  As of December 31, 2006.  All investments made by the Investment Manager in funds managed by, or related to, Macquarie will be independently reviewed and approved by NexGen.

  16. The Macquarie Group Jon Fitch • Head of the infrastructure securities team and portfolio manager of MGU, MFD, MIISF and Cathay (Taiwan) funds since inception • Manages US$1.4 billion of assets which invest in similar styles to the Fund • Over 19 years of business experience encompassing: • business management, equity analysis, consulting and banking • almost 11 years at Macquarie • over 9 years dedicated to Infrastructure • From 2001 to 2003, Jon was located in Hong Kong, where he was responsible for establishing a Hong Kong based research team of five analysts, and initiating research coverage on Asian infrastructure and utility stocks • Prior to that Jon led the equity research coverage of the entire Australian infrastructure sector, including: tollroads, gas companies, electric utilities, airports and diversified funds

  17. Track Record – Other Macquarie Funds  Refer to the Prospectus for full fund performance details

  18. The Macquarie Group – MGU Performance • NAV took only 10 months to return to issue price. Share price took 14 months to return to issue price MGU: NYSE Performance Since Inception October 18th, 2006

  19. NexGen Financial LP • Founded 2005 by Jim Hunter (former CEO, Mackenzie Financial) • Committed to high quality, innovative, tax efficient products • Seasoned executive team with 100+ years industry experience • Well capitalized by Jim and Bay Street private equity investors • Will act as Canadian manager – portfolio oversight by Jonathan Baird, CFA • NexGen offers family of 13 unique tax managed and 13 registered mutual funds (launched Sept. ‘06)

  20. Offering: Transferable, redeemable shares of the Fund (the Shares”) ‘A’ Shares Conventional Closed End Fund (Front Load) Underwriting Fees and Expenses deducted from the proceeds of the fund $10 per class ‘A’ Share • Summary of the Offering Issuer: • Macquarie NexGen Global Infrastructure Corporation Minimum Purchase: • 200 Units ($2,000) Investment Objectives: • Maximize total Return of the Fund • Provide tax efficient monthly distributions

  21. Summary of the Offering Rationale for the Fund: • The Fund will be actively managed by Macquarie Alternative Investments Limited and will seek long-term, competitive returns by investing in a globally diversified portfolio of publicly listed and private global infrastructure companies and assets. Distributions ‘A’ Shares: • The indicative distribution amount for the first year of the Fund is $0.60 per Unit per annum (5¢ per month) representing a yield of 6% per annum based on the $10.00 per share issue price. • It is expected that distributions to shareholders will be characterized primarily as returns of capital and potentially some capital gains. • All distributions from the Fund will automatically be paid directly to each shareholder. Use of Leverage: • The Fund will employ a leverage ratio of 1 part debt to 3 parts equity (25%).

  22. Annual Redemption Privilege: Shares may be surrendered for redemption during September 2008, and each September thereafter Summary of The Offering The Manager has the option to implement Currency Hedging: Unlimited – Forward Life 20 years Life of Fund: Manager: NexGen Financial LP Jonathan Baird, CFA (Portfolio Oversight) Investment Manager: Macquarie Alternative Investments Limited Eligibility: Eligible for RRSPs, RRIFs, DPSPs, and RESPs

  23. Summary of The Offering Management Fee: ‘A’ Shares • 1.10% of total assets per annum, paid monthly • 1.47% based on NAV Service Fee: ‘A’ Shares • 0.40% of NAV per annum, paid monthly Selling Concession: ‘A’ Shares • 2.80% (Agents fees total 5%) Anticipated Timing: Sizing: Late February 2007 Closing: Mid March 2007

  24. In Summary This may suit clients who are looking for… • Exposure to infrastructure securities on a global basis • Developed and developing countries • Infrastructure sectors not easily accessible by Canadian investors(e.g. airports, toll roads and water utilities) • Annual tax efficient income and potential capital growth • Diversification and potentially reduced correlation in their portfolios • Actively-managed investment, managed by an experienced, dedicated Global Infrastructure team with established process and track record

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